The CSR Minute: Transparency in the Financial Sector—Cloudy Days Ahead?

Transparency in the Financial Sector: Cloudy Days Ahead? - The Minute

Since 2008, many rules and laws have been put in place throughout the financial sector to prevent another global economic meltdown. The trend has been to increase transparency through more—and tougher—regulation. From stress tests for banks to the Dodd-Frank bill’s provisions to control financial risk, from new rules about fiduciary duties by investment advisors to requirements for large global banks to hold more capital, the global financial system has been pointed to more open practices.

Now, cloudy days threaten to obscure this new transparency. President Trump has promised to roll back financial regulations, including many, if not most, of the Dodd Frank bill’s provisions. The EU is reviewing international banking standards with an eye toward relaxing them. UK banks are clamoring for policy changes to entice investment in the event of a “hard Brexit” that punishes London-based financial firms.

One thing is clear in this confusing fog of reversals: transparency is a value that must be fought for to be preserved. I’m John Howell for 3BL Media.